One of Europe’s largest real estate investment trusts (REIT) has reached an agreement with the City of London Corporation to redevelop the Shoreditch Estate.
British Land has entered into an option agreement with the Corporation and will draw down a development agreement subject to securing revised planning consent on the sites. On practical completion British Land said it will acquire a long leasehold interest in the sites.
“We are pleased to have entered into this agreement with The City of London Corporation,” said Tim Roberts, head of offices at British Land. “The Shoreditch Estate is a growing area of London and plays well to our planning and development skills. With much of our existing development programme completing over the next year, this site further adds to our pipeline. We remain positive about the outlook for development in London and expect this investment to generate good returns for our shareholders.”
Michael Cassidy, chairman of the Corporation’s property investment board, said: “The City of London Corporation is delighted to be involved in this redevelopment with British Land. It will enable the Shoreditch Estate site to be regenerated over the coming years and play a key role as this exciting area of London continues to change.”
The estate consists of three sites covering two acres that fronts onto Shoreditch High Street, Norton Folgate immediately to the north of Spitalfields, and the core City of London market. The sites have potential for around 320,000 sq ft of office, retail and residential accommodation in a mix of new, retained and refurbished buildings.
Located in the heart of the Elder Street Conservation Area, the development requires a sensitive and collaborative approach to design and British Land have appointed AHMM as architects to draw on their extensive experience in this field.
Nigel Webb, head of development at British Land added: “We are excited by the site’s potential to provide a vibrant mix of offices integrated with retail and leisure uses along with high quality residential. We expect the smaller offices to appeal to increasing demand from technology and media companies in this area of London. A number of the existing buildings will be retained and brought back into active use to provide an attractive and characterful environment.”